Redundancy and Restructuring Planning
In forming a restructure proposal and deciding whether to implement a restructure, employers will need to:
Bosses will also need to be prepared to produce documentary evidence setting out the rationale behind a redundancy proposal and their consideration of any alternative submissions provided by workers, including evidence as to why they rejected them in favour of the final decision.
The express necessity of having a robust and justifiable proposal has arisen because of the recent decision of the Employment in Totara Hills Farm v Davidson, where the Chief Judge confirmed that the Court can assess the business decision behind a redundancy to determine whether the decision, and how it was reached, were what a fair and reasonable manager could have done in all the relevant circumstances.
Employers are reminded that where a redundancy is contemplated one of the primary steps is to consult the employees whom may be affected.
(a) Consultation requires more than mere prior notification and must be allowed sufficient time. It is to be a reality, not a charade. Consultation is never to be treated perfunctorily or as a mere formality.
(b) As consultation must precede change, a proposal must not be acted …